James Hardie Industries Reports 64% Revenue Growth to $1.475 Billion in Latest Quarter

James Hardie Industries plc reported significant financial growth in its latest quarterly results, with net sales reaching $1.475 billion for the three months ended June 30, 2026, a 64% increase compared to $899.9 million in the same period last year. This surge in revenue was primarily driven by the acquisition of The AZEK Company Inc., which contributed $397.1 million to net sales. The company's gross profit also saw a substantial rise, climbing to $548.7 million from $336.9 million, although the gross margin slightly decreased to 37.2% from 37.4% due to amortization costs related to the AZEK acquisition.

In terms of profitability, James Hardie's operating income increased by 57% to $217.7 million, up from $138.6 million in the prior year. Net income for the quarter was $104.3 million, a 67% increase from $62.6 million, with diluted earnings per share rising to $0.18 from $0.15. The company attributed these improvements to higher sales across its Siding & Trim, Australia & New Zealand, and Europe segments, alongside a reduction in acquisition-related expenses.

Operationally, the company reported a 34% increase in net sales within its Siding & Trim segment, driven by higher sales volumes and prices. The Deck, Rail & Accessories segment, however, experienced a decline in sales compared to the previous year, reflecting lower volumes post-acquisition. The Australia & New Zealand segment reported a 26% increase in sales, while the Europe segment saw a 15% rise, indicating strong performance across its geographic markets.

James Hardie also noted a strategic focus on integrating AZEK into its operations, with ongoing costs related to this acquisition impacting financial results. The company recorded $16.6 million in acquisition-related expenses during the quarter, down from $29.4 million a year earlier. Additionally, restructuring expenses increased due to the closure of a recycling plant in Oregon, reflecting the company's efforts to streamline operations.

Looking ahead, James Hardie anticipates continued growth driven by the integration of AZEK and the expansion of its product offerings. The company expects to maintain sufficient liquidity to meet its operational needs, with cash and cash equivalents totaling $289.9 million as of June 30, 2026, alongside $843.2 million available under its revolving credit facility. The outlook remains positive, with management expressing confidence in the company's ability to capitalize on market opportunities and enhance shareholder value.